Potential Risks of Climate Change and Response Measures

The Company is an electronic component distributor that is mainly in the business of electronic parts sale and R&D, and is not involved in manufacturing. Nevertheless, as a global citizen, the Company has a profound understanding of the importance of environmental sustainability, and implements an environmental management system to minimize the risk of environmental violations. The Company is actively implementing energy conservation and carbon reduction plans, raising the environmental protection awareness of its employees, and improving the efficiency of resource use.

According to the Special Report on the Ocean and Cryosphere in a Changing Climate (2019 SROCC) released by the Intergovernmental Panel on Climate Change (IPCC), environmental and climate change facts currently include the following: increased chance of strong typhoons, the sea level rising by one meter in the worst case scenario, doubled frequency of marine heatwaves, and loss of coastal wetlands. These facts can be considered urgent issues to be followed by businesses around the world. To mitigate the impact of climate change risks and their effects on business, WT Microelectronics is to devise countermeasures and work toward sustainable development.

Risks and Response Measures

Risks		Influence		Response measures		Implementation details
Typhoons and extreme climate events		Invest more resources for disaster prevention, staff injury recovery, and disaster relief.		Impact mitigation		Constantly keep track of weather forecasts and establish mitigation strategies for each extreme climate event. When selecting operating sites or deployment zones, caution should be taken to avoid low-altitude areas near the sea and consider whether the selected location is flood and earthquake-proof. Group accident insurance, fire insurance, and transportation insurance for employees, buildings, and cargo need to be in place to transfer and disperse risks.
		Damage to data storage devices causing data loss.		Enhance IT safety		Weekly offsite data backups. Data from the main data center is constantly backed up to a secondary data center 30km away from the main site. Regular service migration exercises are to be performed so as to allow for the resumption of company operations in the shortest time possible in the event of an incident.
Extreme heatwaves		Increased energy consumption.		Raise awareness for energy conservation		Energy conservation slogans will be attached to light switches, water taps, and air conditioners reminding users to be vigilant about turning off lights, conserving water, and setting the air conditioner target temperature to the 26 to 28 degrees Celsius range. Televisions in elevators and staircases will be occasionally updated with energy conservation adverts promoting the use of staircases over elevators. Staircase climbing races will also be held to raise awareness for energy conservation through fun activities.
		Increased equipment downtime.		Regular maintenance		Each piece of equipment must be properly maintained according to the manufacturer's manual. The frequency of scheduled maintenances also needs to go up to ensure performance and reduce downtime.
Uncertainty of energy availability		Energy costs may go up while supply becomes inconsistent.		Reduce energy costs		Install energy-saving mechanisms or turn on power-saving settings for lights, water taps, air conditioners, water fountains, coffee machines, and other office equipment; old equipment that are more energy-hungry will be gradually replaced each year, office spaces will be made more eco-friendly by reducing room temperatures through the installation of light-blocking curtains. A monthly power savings report will be compiled to examine the results achieved by each department to further encourage the reduction of energy costs.
				Stabilize energy supply		Constantly monitor for the latest trends and technologies in the global energy scene as well as maintain updates on relevant government policies and legislation. Energy conservation efforts will be constantly revised and optimized while seeking viable alternative energy sources to ensure energy security.